Stock Analysis on Net
Stock Analysis on Net
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AT&T Inc. (NYSE:T)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

AT&T Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to AT&T 13,903  19,370  29,450  12,976  13,345 
Net income attributable to noncontrolling interest 1,072  583  397  357  342 
Net noncash charges 45,619  34,017  11,936  28,123  26,451 
Changes in operating assets and liabilities (11,926) (10,368) (2,632) (2,112) (4,258)
Net cash provided by operating activities 48,668  43,602  39,151  39,344  35,880 
Capital expenditures (19,635) (21,251) (21,550) (22,408) (20,015)
Net change in short-term borrowings with original maturities of three months or less (276) (821) (2) —  (1)
Issuance of other short-term borrowings 4,012  4,898  —  —  — 
Repayment of other short-term borrowings (6,904) (2,098) —  —  — 
Issuance of long-term debt 17,039  41,875  48,793  10,140  33,969 
Repayment of long-term debt (27,592) (52,643) (12,339) (10,823) (10,042)
Free cash flow to equity (FCFE) 15,312  13,562  54,053  16,253  39,791 

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to AT&T Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. AT&T Inc.’s FCFE decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to FCFE Ratio, Current

AT&T Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 7,126,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 15,312 
FCFE per share 2.15
Current share price (P) 28.99
Valuation Ratio
P/FCFE 13.49
Benchmarks
P/FCFE, Competitors1
Verizon Communications Inc. 21.41
P/FCFE, Sector
Fixed Line Telecommunications 16.92
P/FCFE, Industry
Telecommunications 25.41

Based on: 10-K (filing date: 2020-02-20).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

AT&T Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 7,172,884,070 7,284,589,883 6,141,532,706 6,141,570,142 6,151,208,898
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 15,312  13,562  54,053  16,253  39,791 
FCFE per share3 2.13 1.86 8.80 2.65 6.47
Share price1, 4 38.61 30.85 36.77 41.48 36.99
Valuation Ratio
P/FCFE5 18.09 16.57 4.18 15.67 5.72
Benchmarks
P/FCFE, Competitors6
Verizon Communications Inc. 20.61 18.28 12.93 51.50 24.15
P/FCFE, Sector
Fixed Line Telecommunications 19.18 17.39 6.10 22.63 8.98
P/FCFE, Industry
Telecommunications 24.27 23.01 7.21 27.79 9.20

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 15,312,000,000 ÷ 7,172,884,070 = 2.13

4 Closing price as at the filing date of AT&T Inc.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 38.61 ÷ 2.13 = 18.09

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. AT&T Inc.’s P/FCFE ratio increased from 2017 to 2018 and from 2018 to 2019.